Volume : 2, Issue : 4, APR 2016
A STUDY ON CULTURAL ISSUES IN MERGERS AND ACQUISITIONS
Dr. V. Noorzia Nasreen, V. Shugufta Yasmeen
Companies today are combining in record numbers. Executives pursue mergers, acquisitions, and joint ventures as a means to create value by (1) acquiring technologies, products, and market access, (2) creating economies of scale, and (3) establishing global brand presence. There is an underlying belief that most markets can provide revenues to three large suppliers; when more than three exist the urge to merge is irresistible. The paper explains the cultural issues which mainly influences the cmergers and acquisitions of the company. Culture has emerged as one of the dominant barriers to effective integrations. In one study, culture was found to be the cause of 30 percent of failed integrations. Companies with different cultures find it difficult, if not often impossible, to make decisions quickly and correctly or to operate effectively.
Article : Download PDF
Cite This Article
Article No : 15
Number of Downloads : 735
1. Frederick D. Miller and Eileen Fernandes (2009), “Cultural issues in mergers and
acquisitions,” Deloitte Development LLC, Touche Tohmatsu.
2. Isaac Dixon, “Culture Management and Mergers and Acquisitions,” Society for
Human Resource Management case study, March 2005.
3. Andrade, Gregor, Mark, Mitchell and Erick Stafford, “New Evidence and Perspectives
on Mergers,” Journal of Economic Perspective, 15, Spring, 2001, pp: 103 – 120.
4. Annonymous: “The Raider's Road Map” Business India, May 1995, pp: 66.
5. Singh, H. and C. A. Montgomery (1987). 'Corporate acquisition strategies and economic
performance', Strategic Management Journal, 8, pp. 377-386.
6. Sales, A. L. and P. H. Mirvis (1984). 'When cultures collide: Issues in acquisition'. In J.
R. Kimberly and R. E. Quinn (ed.), Managing Organizational Transitions. Irwin, Homewood,
Illinois, pp. 107-133.
7. Kumar, M. R, (1995), “Corporate Mergers in India: Objectives and Effectiveness,”
Kanishka, New Delhi.
8. Lubatkin, M. (1987) “Merger Strategies and Stockholder Value.”Strategic Management
Journal, 8, pp: 39-53.
9. Mantravedi P and Reddy A.V.(2008) “Post - Merger Performance of Acquiring Firms
From Different Industries in India,” International Research Journal of Finance and Economics
Issue 22, pp: 192 – 204.